Our Future Finances

customers, finance futures

There is little more adult-like than starting to talk about pensions, putting things in place for our children’s futures and that sort of thing. Our future finances are something that we’ve been talking about recently because at the end of the day, one day our boys will be grown, we will be looking at retiring and we do want to spend our later years doing things that we want. Like everyone else, unless we start playing the lottery and win, we are going to have to find another way to fund our future bucket list or dream shopping list.

The beauty of the modern world is that you have options these days when it comes to arranging how your future finances will look. Here are just some of the things that you can look at doing in order to make sure you have pennies available for later in life.

Savings

We are diligent when it comes to savings. The first thing we do every month is put money into our pots before paying bills or anything else. I used to find that if I waited to see what was left at the end of the month before saving, that for whatever reason, there wouldn’t be anything left. Funny old thing that.

We split our savings so that we have rainy day savings, car/maintenance savings, future “don’t touch this” savings and so on.

Property

I know many people who are planning on using their property once their mortgages are paid off to work as a kind of pension for their future. I know others who plan on using their property some way to help them fund their retirement bucket list. I think this is a great way to maximise (and fund) the fun and mischief that you can get up to later on down the road. Having bought a house and paid it off, you have much more flexibility in how you will fund your future financial needs.

Pensions

Pensions are important. You can find out how much your state pension will likely look like by registering with HMRC and looking on your online tax account. There are numerous things that may affect how much state pension you will get. It isn’t likely to be enough to live on.

We have worked hard to maximise what we will get back from our pensions and the workplace pensions can be brilliant if you have the right provider and a decent employer. I am not employed, being a freelance copywriter and of course, therefore, don’t have a workplace pension. There are other private pensions available however so thankfully we’re covered.

Lottery Win

A substantial win on the National Lottery could very well cover our future finances in terms of allowing us to do what we want to do once we’ve retired. The thing is, I’m not one for gambling on my future and at £2 a line I’d rather put my pennies into savings.

Bucket List

What are our future finances for? We have big plans, small plans and of course, we want to be able to be comfortable when we are no longer working. Just some of our plans include travel, learning new skills and perhaps some smaller local projects that we’d love to have the time and money to help with, without compromising on paying our bills.

Your Future Finances: The Conclusion

While saving towards your future finances and looking for ways to fund your later years is nowhere near as exciting as spending your pennies on fun now, there’s a good chance that down the road that you will wish that you had. Think carefully about how you will manage later on, as tomorrow comes around quicker than we’d like, and get proper advice on how to manage your pensions, savings, property matters and more.

 

Savings and Our Children’s Futures

Very quickly after you’ve found yourself immersed in nappies and sloppy smiles your in-built parenting alarm starts sounding off once you have kids which alerts you to all of the things that you never actually thought you would need to think and worry about. The list is vast and ranges from health to school to development to just about everything that will touch your child’s life between their birth and your death!

Today I’m talking about the parenting worry that is their financial future.

It will come as no surprise to anyone that the UK has had a fairly shocking time of it in recent years. While we seem to be clawing our way back up from a fairly bleak time economically it’s safe to say that few of us are as complacent about our finances as we once might have been.

Our boys both have a CTF (Child Trust Fund) which we have continued to invest in and savings books of their own which we have given them to use to build their own savings for things that they want. Taylor is three and at the moment his is used mainly for birthday money and such-like which we can use to buy treats from those who send him pennies yet Kieran uses his more proactively, being seven now (or nearly eight as he keeps reminding me).

Kieran has a money jar and he puts all of his pennies and pocket money and basically anything he can get his hands on into it. When it starts to build up he trots off down to the bank to pay his money in. He loves doing this himself and I love that he values saving up for things. When he has the “right” amount saved up for whatever Lego or Minecraft treat he must have next he withdraws and buys it. I love that at seven (nearly eight) years old he understands the importance of saving up for what you want and that he enjoys doing it. This sort of attitude will help protect him financially as he moves into adulthood, regardless of what the economy looks like then and we hope to teach Taylor the same lessons about savings.

Before long we will be talking to Kieran about having some extra savings with Santander, an account where he can save up for when he is an adult. Perhaps he’ll put a percentage of his money jar cash in there and keep the rest for his “normal” savings. He’ll have CTF savings coming his way when he hits eighteen which I hope goes towards a car, driving lessons, a flat deposit or similar however we also want him to have long term savings that he contributes to so that saving for now as well as later becomes second nature.

Sadly we can’t control what the future holds for the boys completely however we are determined that financially they will be well versed in the importance of both long and short term savings and that they have the knowledge needed to manage their finances properly.

moneybox
Kieran’s home savings pots has been emptied into his savings account and is now being refilled!

*Written in co-operation with the mentioned business yet my thoughts, feelings and experiences relating to this post are entirely my own.

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